RISK DISCLOSURE

1. INTRODUCTION

This Risk Disclosure Statement (“Statement”) is provided by CaravanFX Limited (the “Company”), an International Business Company incorporated in Saint Lucia, in accordance with applicable laws and industry standards.

This document is intended to inform clients of the potential risks associated with trading in Foreign Exchange (Forex) and Contracts for Difference (CFDs), including but not limited to CFDs on currencies, commodities, indices, equities, and cryptocurrencies.

Trading in these instruments involves a high level of risk and may not be suitable for all investors.

Cryptocurrency CFDs are considered high-risk instruments and may not be suitable for retail clients.

2. NO INVESTMENT ADVICE

The Company does not provide investment advice, portfolio management, or financial recommendations unless explicitly agreed in writing.

Any information provided:

is for informational purposes only;
does not constitute investment advice;
should not be relied upon as a recommendation.

Clients are solely responsible for their trading decisions.

3. HIGH RISK OF LOSS

Trading Forex and CFDs is speculative and involves a significant risk of loss, including the possible loss of your entire invested capital.

You should not trade with funds you cannot afford to lose.

4. LEVERAGE RISK

CFDs are leveraged instruments.

This means:

a small market movement can lead to a disproportionately large impact on your account;
both profits and losses are amplified.

Leverage may work against you as well as in your favor.

5. MARKET VOLATILITY

Financial markets may experience:

rapid price movements;
low liquidity;
unexpected volatility.

This can result in:

slippage;
inability to execute orders at expected prices;
sudden losses.

6. LIQUIDITY RISK

Under certain market conditions:

it may be difficult or impossible to execute trades;
positions may not be closed at desired levels.

This is especially relevant during:

major economic events;
market openings/closures;
extreme market stress.

7. COUNTERPARTY RISK

The Company acts as a counterparty to client transactions.

This means:

client trades may not be executed on a regulated exchange;
pricing is derived from liquidity providers and market sources.

Clients are exposed to the financial and operational stability of the Company.

8. TECHNICAL RISK

Trading platforms and systems may be subject to:

internet disruptions;
hardware or software failures;
latency issues.

The Company is not liable for losses resulting from:

system errors;
connectivity failures;
technical malfunctions.

9. CRYPTOCURRENCY RISK

Trading or funding involving cryptocurrencies includes additional risks:

high volatility;
regulatory uncertainty;
irreversible transactions;
cybersecurity risks.

Cryptocurrency markets operate 24/7 and may behave unpredictably.

10. PRICING AND EXECUTION RISK

Prices displayed on the platform:

may differ from external sources;
may be affected by spreads and execution delays.

Execution may occur:

at requested price;
at a different price (slippage).

11. NO GUARANTEE OF PROFIT

The Company does not guarantee:

profits;
avoidance of losses;
performance of any trading strategy.

Past performance is not indicative of future results.

12. MARGIN AND STOP-OUT RISK

Clients must maintain sufficient margin at all times.

Failure to do so may result in:

automatic liquidation of positions;
stop-out events;
loss of funds.

13. LEGAL AND REGULATORY RISK

Clients are responsible for ensuring that:

trading is legal in their jurisdiction;
they comply with all applicable laws.

Regulatory changes may impact trading conditions.

The Company does not provide services involving the purchase or custody of actual cryptocurrencies. All cryptocurrency-related instruments are offered as CFDs and do not grant ownership of the underlying asset.

14. CLIENT RESPONSIBILITY

By using the Company’s services, the client confirms that:

they understand the risks involved;
they have sufficient knowledge and experience;
they are financially able to bear losses.

15. ACKNOWLEDGMENT

By opening an account and trading with CaravanFX Limited, the client acknowledges that they have read, understood, and accepted this Risk Disclosure Statement.

16. CRYPTOCURRENCY CFD RISK DISCLOSURE (EXTENDED)

Trading CFDs on cryptocurrencies involves additional risks beyond those associated with traditional financial instruments.

These risks include, but are not limited to:

Extreme volatility: Cryptocurrency markets are highly volatile and may experience sudden and unpredictable price movements;
24/7 market exposure: Cryptocurrency markets operate continuously without interruption, increasing the risk of price gaps and overnight exposure;
Liquidity fluctuations: Market liquidity may vary significantly, particularly during periods of stress;
Pricing discrepancies: Prices may differ across exchanges and liquidity providers;
Regulatory uncertainty: Cryptocurrency regulations vary across jurisdictions and may change without prior notice;
Technology risks: Blockchain networks, exchanges, and infrastructure may be subject to outages or attacks;
Market manipulation risk: Cryptocurrency markets may be more susceptible to manipulation due to lower regulation.

Clients acknowledge that trading cryptocurrency CFDs is highly speculative and carries a significantly higher level of risk.

18. CRYPTOCURRENCY FUNDING RISK

Transactions are irreversible;
Risk of sending funds to incorrect wallet addresses;
Blockchain delays;
Third-party wallet risks.

19. CONTACT INFORMATION

CaravanFX Limited

Saint Lucia

Registration No.: 2025-00901

For any questions, please contact our support team.

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